I think we have along way to go before P/E ratios get where they need to be. Amazon is trading at about 100 times projected 2003 earnings. I think that is insanity. If you don't look at the indexes, but just look at the fundamentals on a lot of the "most widely held," there are still a lot of overvalued stocks out there.

I'm not a huge Amazon bull, although I like the stuff they've done with community and intelligent suggestions. I think part of their valuation is purely speculative. However, I also think that if they HAD to be profitable right now, and took an axe to all of their new business development efforts, they probably could be. That's not based on an analysis of their financials, just a superficial look. Ultimately, I think, the question is whether anyone will pay ten cents more to Amazon for a book (or whatever) than to the cheapest guy on the web. At this point, I'd say, their best bet is to focus on 1) efficiency in processing orders and all other aspects, and 2) buying the product as well as or better than anyone else. I think web retailing will end up being completely cost-driven.

Please, please, please don't try to pick a bottom, you'll just get burned. If you want to invest than you need to specifically research investments that your interested in so that you know if and when they are bargains and you don't hesitate when the time comes to act. You could also consider "dollar cost averaging" into these. If you want to trade, well that's a whole different ball game, but I can almost guarantee that the US financial markets are going to be much more tradable than "investable" for the next few years because we are headed sideways at best. Stock investors will be lucky to make 8% a year until at least 2005 IMHO. The Major US Indexes are short term oversold here but longer term we could easily hit new multi year lows.

Ya really think they are oversold? For the sake of existing investments that would be really nice but if companies start having to expense options, there are a few more rounds of accounting disclosures, and whatever else comes up, it may be that the majority of these tech companies have never made any money once options are figured in.

Even though that doesn't really change anything, it changes perception and that is more than enough to keep prices at current levels or send them lower.

You know, I thought symantec should be a good play on the security fears, but it's P/E ratio says otherwise. Still, we're a smart bunch (or think we are) so what's starting to look attractive for the long-term buyer?

though there doesn't seem to be much of a trend there for capital gains on the stock itself.

But I think that is as it should be. For much of the 90's, the stock market was like a giant pyramid scheme (I hope the same terminology applies overseas :)). Stocks became more valuable not because of company growth but because there seemed to be an endless line of investors ready to pump money into stocks (remember Yahoo at $250 per share?). It turned out that the line of investors was not endless, and the pyramid collapsed.

I think the market is trying to find its way back to the fundamentals - profitable companies with proven management teams, a history of making money, and the ability to pay dividends - all of which adds up to a stock which should appreciate in value over the long haul.

6 months ago it seemed like there were lots of good buys that were down 75-90%, and not the fly by night dot-coms. Six months later they're down another 50-75%. Some of these have to be near the bottom. Even WorldCom isn't capable of going below zero:)

Healthcare might be a bright spot for investors, but with the price of prescription drugs increasing, benefits being cut, seniors investments vaporizing, there will be no one to pay the bills.

The same would have worked for Enron with the right timing. Seems like there is often a little window of opportunity to buy right at the bottom before everyone decides to hop back in and try to catch that bounce.

We should get more upside here today. Look for it to begin after the noon doldrums and run into the close. Nice trend day up, a step helping to correct the short term oversold conditions that I mentioned earlier.

Hehe...whatever time my post says Mardi_Gras...which I believe was around noon EST...what i'm really saying is that the major indexes are holding up well and that they should rally higher before the close...

Citigroup slapped with a sell! Now there is somethin' ya don't see everyday.

Agree skibum, but even more significant than that news is how the Nasdaq in paticular is handling the news. It's been showing pretty good relative strength (compared the the other indexes) through out the day.

If my career still depended upon my quarterly book, I would be as low profile and hedged as I could be these next two weeks with the "00" of an aniversary coming up on the 11th added onto a tumultios earnings period. Personally I do think there will be buying opportunities these next two months or at least a good chance to re-organise portfolios, and make some short term plays if OPM is not at stake (oh that "prudent man rule"). Regardless it will be interesting times this quarter.

We saw a lot of spending pullbacks after 911, but now that the markets are tumbling of their own accord business doesn't seem as concerned.

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"A big pie in the face of investors will be Tyco, whose numbers are in shambles," said Cohodes. "Tyco's numbers when they come out will have a bigger impact on the market. It will make EDS look like Sunday school."

Ever work with any company before and after Tyco bought them? They buy it and after the acquisition a perfectly good company ceases to function.